2023 (2) TMI 1062

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....sed to law and facts of the case. 2. The learned CIT(A) NFAC erred in upholding order of Assessing Officer with regard to interest earned from nominal members of Rs 4.02,789/- which is against the Supreme Court principle laid down in the case of The Mavilayi Service Coop Bank Ltd & Others Vs CIT (2021) 431 ITR 01 (SC). 3. The learned CIT(A) NFAC erred in upholding order of Assessing Officer that proportionate interest earned from funds of Rs 45,397/- is not eligible for deduction u/s 80P(2)(a)(i) by not assigning any reason much against the jurisdictional High Court cases of (i) Tumkur Merchants Souharda Credit Cooperative Ltd 230. Taxman 309(Kar) (ii) Guttigedarara Credit Cooperative Society Ltd Vs Incom....

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..... He further noted that there was a cash deposited during the demonetization of Rs.35,91,500/- for the period from 10.11.2016 to 12.11.2016. These cash deposits were made out of Rs.12,81,503/- from the closing cash balance and daily collection from the members. The assessee also submitted detailed list of the members of the society who have deposited cash during the above period and no addition was made on this issue. Accordingly, the total income of the assessee determined at Rs.4,48,186/- and AO allowed deduction under section 80P(2)(c)(ii) of the Act of Rs.50,000/-. Assessee's income was determined at Rs.3,98,186/-. 3. Aggrieved by the above order, the assessee filed appeal before the CIT(A). During the course of appellate proceedings....